TSMC Expected to Grow 31% by 2026, Capitalizing on AI Boom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Fool
- Market Leadership: TSMC, as the world's largest chip foundry, is expected to achieve a 31% growth by 2026, highlighting its crucial role in the AI boom and further solidifying its market leadership.
- Value Investment Opportunity: With a price-to-earnings ratio of 25, which is lower than its peers, TSMC presents a compelling investment choice due to its strong growth potential, likely attracting more capital inflow.
- Data Center Spending Growth: Both AMD and Nvidia project that the global data center compute market will reach $1 trillion by 2030, positioning TSMC, as a primary chip supplier, to directly benefit from this trend and ensure sustained revenue growth.
- Optimistic Industry Outlook: As AI spending increases, TSMC's clients express confidence in future growth, indicating that the company will continue to perform strongly in the market over the coming years.
Analyst Views on TSM
Wall Street analysts forecast TSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSM is 348.25 USD with a low forecast of 290.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 323.630
Low
290.00
Averages
348.25
High
400.00
Current: 323.630
Low
290.00
Averages
348.25
High
400.00
About TSM
Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based integrated circuit foundry service provider. The Company is primarily engaged in integrated circuit manufacturing services. It offers advanced process technologies, specialised process solutions, advanced photomask and silicon stacking, and packaging-related technologies, while supporting a comprehensive design ecosystem. The Company's products serve diverse electronic sectors including artificial intelligence, high-performance computing, wired and wireless communications, automotive and industrial equipment, personal computing, information applications, consumer electronics, smart internet of things, and wearable devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
